FINSUM + Magnifi: Pharma Still a Value Play Despite Being a Key Industry in the Pandemic

(March 2021)

Most pharmaceutical companies kicked it into high gear to develop the Covid-19 vaccine, but they received very little investor attention compared to the overall market. Price to earnings ratios are among the lowest of any industry group in the S&P 500. Many drug companies will see their future earnings increase as we exit the pandemic because many American’s have halted their prescription use for smaller ailments during Covid. Pfizer has seen some of the most extreme value of the pharmaceutical companies, and ‘booster’ shots could sustain covid earnings. Lilly, AbbVie, Bristol Meyers, and Merck all have a promising future pipeline that could generate profits for future investors.
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